This year, Eric, Vince, Drama, 'and Shauna form a movie development company called Cumberland Corporation.

Eric contributes cash of $$5,000$ and land fair market value $($FMV$))$ that was purchased as an investment four years ago $($for $$2,000)$ in exchange for $25$ shares of Cumberland stock.

Vince contributes studio machinery purchased four years ago and used in his modeling agency. The machinery has a $$50,000$ adjusted basis and a $$40,000$ FMV$.$ In exchange for the machinery, Vince received $40$ shares of Cumberland stock.

Drama contributes a building with a $$10,000$ adjusted basis, $$50,000$ FMV$,$ and $$30,000$ mortgage $($assumed by Cumberland$)$ in exchange for $20$ shares of Cumberland stock.

Shauna, the publicist in the group, contributes services $($organization costs$)$ worth $$20,000$ and $$5,000$cash in exchange for $25$ shares of cumberland stock.

REQUIRED :

a$.$ For each shareholder in Cumberland Corporation, determine realized gain$/($loss$),$ recognized gain$/($loss$),$ and basis in Cumberland shares.

$\backslash$table$[[,\backslash$table$[[$Realized$],[$gain$/($loss$)]],\backslash$table$[[$Recog$.],[$Gain$/($loss$)]],\backslash$table$[[$Adjusted basis$],[$in new shares$]]],[$Eric$,,,],[$Vince$,,,],[$Drama$,,,],[$Shauna$,,,]]$

b$.$ For Cumberland Corporation, determine the basis of each contributed asset.

Cash

Mortgage

Land

Makhinery

Building

other

c$.$ Assume that all the facts are the same except Shauna contributes services worth $$25,000$ and $$0$ cash in exchange for $25$ shares of Cumberland stock. For each new shareholder in Cumberland Corporation, determine realized gain$/($loss$),$ recognized gain$/($loss$),$ and basis in shares of Cumberland Corporation.

$\backslash$table$[[,\backslash$table$[[$Realized$],[$gain$/($loss$)]],\backslash$table$[[$Recog$.],[$Gain$/($loss$)]],\backslash$table$[[$Adjusted basis$],[$in new shares$]]],[$Eric$,,,],[$Vince$,,,],[$Drama$,,,],[$Shauna$,,,]]$